Everest Re posted a 28 percent year-on-year increase in second-quarter profits last night — despite catastrophe losses totalling $70.4 million for the three-month period.

The Bermuda-based reinsurer said in its earnings statement that net income, including net realised capital gains and losses, was $282.9 million for the April through June period, up from $220.4 million for the same period in 2006.

Broken down, those earnings amounted to $4.45 per share this year, compared to $3.38 in the second quarter of 2006.

Half-year results also showed an improvement on last year, with net income for the six-months up to June totalling $580.5m, compared to $388.8m last year.

The company said the storms and floods in the UK and Australia were the chief reasons for the catastrophe losses. That had an impact on the combined ratio, which rose to 89.2 percent in the second quarter, compared to 87.7 percent in the same period last year.

Gross written premiums for the quarter were $935.5 million, a 2.8 percent increase compared to $910.4 million in the second quarter of 2006. Growth in the reinsurance segments, with gross written premiums up by 8.2 percent quarter over quarter, more than offset the decline in the insurance book.

Net investment income increased 17.2 percent to $179.7m compared to $153.3m in the second quarter of 2006.

Shareholders equity grew from $5.1 billion to $5.3bn in the first six months of 2007, despite $200m of share repurchases and a doubling of the common dividend.

Since the end of 2006, Everest has repurchased 2.1 million of its common shares at an average price of $95.32. The total cost of the repurchased shares is $200 million, $19 million of which was purchased in the second quarter.

Chairman and chief executive officer Joseph Taranto said: "The earnings power evident in recent quarters highlights the strength of Everest's franchise.

"In an increasingly challenging marketplace, we have maintained our discipline and focus always keeping our eyes on the bottom line."